The Known And Unknown For US P&C Industry
In 2020, the US property and casualty (P&C) insurance industry was dealt a heavy blow by the COVID-19 pandemic but there were other factors at play that put insurers in an even tougher spot, a new report has found.
The report, prepared by global data analytics provider Verisk and the American Property Casualty Insurance Association (APCIA), noted that the US P&C industrys net income after taxes dropped 27.5% to $35.1 billion in the first nine months of 2020.
The industrys net underwriting gains also greatly declined to $0.3 billion, from $5.4 billion a year earlier.
Verisk and APCIA have attributed this deterioration in underwriting results in part to a major increase in the losses and loss adjustment expenses from catastrophes, which have more than doubled to $47.1 billion for the first nine months of 2020, compared to $21.5 billion during the same period in 2019.